- Intertek Group plc (LON:ITRK), a leading provider of Total Quality Assurance services today released a trading update for the first four months of the year.
Q1 2021 hedge fund letters, conferences and more
- Revenues rose by 2.7% on a like for like basis, although currency swings pushed the reported number to a 3% decline.
- The group were optimistic about reaching their full year targets, but markets had been hoping for more and the shares dipped almost 2% in early trading.
Intertek Recovers From It's Pandemic-Induced Slump
Commenting on the numbers, Steve Clayton, fund manager of the HL Select UK Growth Shares fund, which holds Intertek said:
“This is a broadly encouraging statement. Sales are beginning to recover from their pandemic-induced slump, with a marked improvement in March and April compared to January and February when the comparatives were much tougher. Intertek are not out of the woods yet though, for sales remain below the 2019 equivalent period, but the group is heading in the right direction of travel.
The world is pushing toward Net Zero and Intertek will be one of the businesses that helps it get there. Assurance services that certify the carbon intensity of businesses and their supply chains will be in strong demand. Intertek’s Carbon Clear and CarbonZero certifications should find a ready reception for years to come. The pandemic pushed corporate health and safety up the agenda and Intertek’s new Protek assurance program should benefit too.
We hold Intertek because of the structural growth drivers behind it, and these seem more likely to accelerate than fade in the years ahead. With a high quality cash-generative business model Intertek looks well placed to grow and it remains a key holding in our fund.”
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